TL;DR Breakdown

• Cardano price is expected to observe sideways movement at the current price level
• ADA faces resistance at the $2.450 mark
• The closest support level lies at $2.20

After climbing above the $2.4 mark, Cardano price faced strong resistance at the $2.45 mark, which caused the price to stop at the level. The price action observes a 13.43 percent incline over the last 24 hours, but the recent spike leaves room for volatility for the Cardano price.

The broader cryptocurrency market enjoys a bullish sentiment across the last 24 hours, with most major cryptocurrencies recording profits across the timeframe. Major player includes Ripple’s XRP and XLM that record a 15.58 and a 16.03 percent increase respectively. Meanwhile, Bitcoin and Ethereum record a 2.89 and a 9.69 percent hike.

Technical indicators for ADA/USDT

Across the technical indicators, the MACD shows strong bearish momentum as observed in the increasing size of the dark red histogram. The indicator did briefly dip into the bullish region today but has grown bearish again and, at press time, oscillates around the 0.042 mark. Across the EMAs, 26-EMA is trading above the 12-EMA and continues diverging while currently the difference between the two is negligible.

The RSI broke out of the neutral region on May 15th and has continued to trade near the 70.00 mark until now. The indicator currently trades just above the 70.00 mark suggesting an overbought Cardano price and moves downwards, showing bearish pressure at the current price level. Moreover, the RSI trades with a steep slope suggesting strong bearish momentum as the buyers don’t appear to be fighting back.

The Bollinger bands at press time are wide, but as the Cardano price action faces resistance at the $2.450 mark, the bands may converge in the short term. The bands are currently converging upwards as the price trades near the upper limit of the indicator. Currently, the bands suggest that Cardano price volatility will decline in the short term as ADA stabilizes.

Overall, the 4-hour technical analysis issues a buy signal with 15 of the total 26 major technical indicators suggesting their support for a bullish movement. On the other hand, only four indicators issue sell signals suggesting a bearish retracement. Meanwhile, seven indicators sit on the fence, issuing no support for either side of the market.

The 24-hour technical analysis accentuates this sentiment and issues a strong buy signal, with 16 of the 26 indicators suggesting a bullish movement against zero indicators suggesting a bearish retracement. Meanwhile, the remaining ten indicators are neutral and do not issue any signals supporting either side at the time of writing.

What to expect from Cardano price?

While the mid-term technical analyses show full support for a bullish trend, the short-term technical indicators suggest an overbought Cardano price and suggest retracement. If the Cardano price fails to climb above the $2.500 mark by today, the price will fall to the $2.20 mark with potential to fall to the $2.00 mark.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Source: https://www.cryptopolitan.com/cardano-price-prediction-2021-05-16/